Income Tax Debt

If you can satisfy all 5 of the following conditions, then your income tax debts are dischargeable if you are willing to file for bankruptcy protection under Chapter 7 or Chapter 13 of the Bankruptcy Code:

(1) the most recent due date for filing the tax return for the tax year in question is over 3 years old;
(2) you filed the tax return for the specific year in question more than 2 years ago;
(3) the assessment of the tax in question is over 240 days old;
(4) your tax return was not fraudulent; and
(5) you must not have been guilty of a willful attempt to defeat or evade the tax.

Even if the income tax debt is not dischargeable, you may be able to file for Chapter 13 bankruptcy protection, and propose a payment plan to pay your tax debts over a period of 36 months to 60 months.

For more information, please contact this office for a free initial consultation.